Brazil’s New Indirect Path to Bitcoin Exposure

OranjeBTC’s DIGY11 has officially launched on Brazil’s B3 stock exchange, providing investors with a novel financial instrument linked to the digital asset ecosystem. Unlike traditional spot Bitcoin ETFs, DIGY11 offers indirect exposure by tracking companies that hold significant Bitcoin reserves on their balance sheets. This real-hedged fund allows market participants to tap into the performance of "Bitcoin-treasury" firms without the need to purchase or hold the cryptocurrency directly.

Portfolio Structure and Strategy

The fund primarily follows a MarketVector index composed of preferred shares issued by companies with substantial Bitcoin holdings. Its portfolio is heavily concentrated in US-based firms, specifically Strategy (STRC) and Strive (SATA). As of mid-September, Strategy’s preferred stock accounted for nearly 75% of the fund's assets. A significant portion of the remaining capital is allocated to cash and currency hedging to mitigate fluctuations in the dollar-real exchange rate, ensuring a local focus for Brazilian investors.

Income Targets and Investment Risks

DIGY11 is designed as a preferred-income product, aiming for an illustrative annual return of the CDI interbank rate plus an additional 3% to 5%. These distributions are made in reais but are not guaranteed, as they depend on the dividend policies and capital structures of the underlying companies. Investors must also account for a 0.90% annual management fee plus administrative costs. Furthermore, the fund’s value is subject to market conditions and the impact of Bitcoin price volatility on the issuers' balance sheets, all without the safety net of FGC protection.